Company Registration in UAE
COMPANY REGISTRATION IN UAE
The United Arab Emirates is one of the world wide centers for doing business activities. The UAE is a great place for businesses because of its tax benefits, investor-friendly laws, and advantageous location. Thus, it is easy to set up a company in the UAE. The authority which is responsible for establishing business in UAE is the Department of Economic of Development of the respective Emirates. The Company Registration in UAE involves the process of determining business activity, choosing the company name, preparing documents and getting license.
Why to Start a Business in Dubai?
The idea to start a business is great but simultaneously it can be both thrilling and difficult and identifying the ideal site is crucial to the success of any new company venture. But here is a solution to this, which is Dubai. It is one of the Emirates of UAE, located in the Middle East. Dubai is one of the fastest growing countries which offers endless advantages and success to your company. With its strategic position, tax advantages, and investor-friendly legislation,Dubai is a worldwide economic hub that provides a dynamic environment for businesses.
Can an Indian Citizen register his company in UAE?
Yes, Indian citizens can register his company in the UAE after fulfilling the requirements and procedures. As UAE is one of the largest business hubs, it allows investors from different countries to do business within the country without any restrictions.
What are the benefits of setting up a Company in Free Zone of UAE?
Foreign Ownership
Unlike the mainland company, the company in Freezone of the UAE enjoys 100% foreign ownership and does not require a local sponsor.
Repatriation of Capitals and Profits
Businesses operating in free zones are allowed to send 100% of their earnings back to their nation of origin. This allows them to freely and unconditionally transfer all of their capital back to their home nation.
Tax Benefits
The Companies in the Freezone enjoy exemption from corporate taxes, personal taxes and custom duties.
No limitation on Currency
Any currency can be used by businesses, giving international trading flexibility.
Worldwide Connectivity
Freezone Company offers chances for you to establish connections with a worldwide business community and boasts a multicultural population.
Ease of import and export
Freezone Companies are close to important ports and airports, thus helps in ease of import and export of various goods. Additionally, it offers advantages for distribution and storage and streamlines customs clearance procedures.
What are the most common types of corporate entity that can be registered in UAE?
1. Mainland Company
Mainland Company is nothing but a company which is located within the United Arab Emirates. The Mainland Company can perform business within the UAE and abroad. There are no restrictions for mainland companies to do business abroad. Further, the legislation of UAE provides for 100% foreign ownership of the mainland company. The Company can do business after getting trade license from the Department of Economic Development of the relevant Emirates
2. Freezone Company
Freezone Company is a legal entity which is located in the freezone area of the Emirates. There are nearly 46 Free zones in the United Arab Emirates. There is no legislation of the UAE that governs with Freezone Company however each freezone has its set of rules and regulations. Free zone company can do it’s businesses internationally and within the Freezone. Further, there is 100% foreign ownership and tax breaks for a company located in the Free Zone.
3. Offshore Company
Offshore company is a legal corporate entity created in a recognised offshore jurisdiction with the primary purpose of engaging in international trade, investing, or asset holding. These businesses are made to function outside of the United Arab Emirates while taking advantage of the country’s tax benefits.
Steps to Register a Limited Liability Company in Dubai
Step 1 : Determine the activities your company will engage in
The government of the United Arab Emirates(UAE) permits an LLC to select from more than 2000 business activities. It is more likely that you can choose your business interest easily.
However, conduct a preliminary research about the business activity to know about the business growth in the future and the rivals in the existing market. This step helps to analyze the opportunities and turn your idea into a profitable and successful company.
Step 2 : Choose your company name and Register it
The next step after deciding on a business venture is to register an LLC in Dubai. Thus, give your business a name and register it with the appropriate authorities. The appropriate authorities to deal with this is DED, Dubai.
You can write down a few names you like for your firm, taking into account your goods and services, future objectives, market niche, company values, unique selling point, etc. Next, make a selection of respectable and distinctive names that your clients will find easy to recall. Since company names are subject to availability, it is a good idea to have multiple options when naming your business.
Step 3 : Locate a site for your LLC Company
Selecting a location for your LLC company is a crucial step. When establishing an LLC Company, your location has a direct impact on the business profits and legal obligations.
Before selecting a location consider various factors such as budget, access to consumers, availability of workforce, technological requirements and access to ports, roads, airports etc.
Decide the location and after which obtain the initial approval certificate from the Department of Economic Development of Dubai.
Step 4 : Prepare the required documents
After determining the business activities, location and name, the next step is to prepare the Memorandum of Association(MOA) for the company.
MOA is an important legal document needed for incorporation of a company. Thus, the MOA must contain details outline its goals, missions and range of business activities. Further, it must also establish a clear relationship between the business and its creditors, stockholders, and regulatory bodies.
Apart from MOA, the other documents required for registration of LLC in Dubai are
- Copy of DED application form
- Passport size photograph
- Passport copy
- UAE Visa copy ( in case of foreign national)
- Lease Agreement
Step 5 : Apply for a business license
Making an application for a business license is the next step after preparing and submitting the documents . This license is essential because it gives the holder the legal right to conduct the business operations listed in the United Arab Emirates. There are three different type of license available for different business operations.
Further, the government of the United Arab Emirates provides for instant business licenses to streamline the process.
Step 6 : Obtaining the license
You can obtain your trade license following the preceding processes for document verification. A licensed business is a legitimate member of the UAE’s commercial community. Additionally, it is permissible for you to participate in and benefit from government projects.
Step 7 : Begin your LLC Company
After registering with the Chamber of Commerce, you are all set to kick off your business in Dubai. Now you can start hiring employees, buy and sell goods, provide services and expand your business entity.
Types of Business Licenses to start your business in UAE
In general, a business license is an official permit given by the government of the United Arab Emirates to conduct your business lawfully within the UAE. There are different types of licenses, each company must obtain a relevant license to do business within the UAE and comply with the local laws and regulations.
Commercial license
Businesses that engage in any kind of commercial trade activity involving goods, commodities, and services are awarded commercial licenses.
Industrial license
Industrial license is necessary for doing manufacturing processes within the UAE. Business owners can use imported or locally sourced raw materials to assemble and manufacture goods with the industrial license. An industrial license is required in order to manufacture Food Metals and Textiles, Engines and equipment, Products made from petroleum and paper.
Professional license
Individuals and companies that provide specialized services are granted professional licenses in accordance with their qualifications and level of experience. Professionals that work directly with clients and need specialized knowledge or training are most suited for this kind of license.
Agricultural license
For individuals or companies engaged in a variety of agro-related activities in the UAE, an agriculture license is required. This license enables organizations to provide a variety of agricultural services and activities.
Tourism license
Businesses in the UAE that offer services related to tourism must get a tourist license. This license guarantees that all operations adhere to the rules and guidelines established by the Department of Tourism and Commerce Marketing.
Craftsmanship license
For people or companies doing skilled manual labour and trades, such as electrical, carpentry and plumbing works, a craftsmanship license is necessary. Businesses that hire artisans to carry out particular work in these domains must have this license.
Documents required to register a company in UAE
- Copy of DED application form
- Passport size photograph
- Passport copy
- UAE Visa copy ( in case of foreign national)
- Memorandum of Association and Article of Association
- Lease Agreement
FAQ
FAQ on Company Registration in UAE
How long it takes to register a Company in Dubai?
Depending on the type of business and its needs, the timeline may change. In general, it could take a few weeks to many months.
Should I need a local partner for company Registration in UAE?
If your company is to be registered in Freezone Company or as a Offshore Company, then no need of a local partner. But, local partner is needed in case of a Mainland Company
Can I trade outside the free zone if my company is registered there?
Yes, companies located in Freezone can trade internationally and within the freezone.
Is it hard to open a business in Dubai?
With investor friendly legislation of the UAE, it is easy and hassle free to open a business in Dubai.
COMPANY REGISTRATION IN UAE
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